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US President Donald Trump has said he may initiate the removal of Federal Reserve Chairman Jerome Powell, accusing him of mismanaging the $2.5 billion reconstruction of the Fed’s buildings in Washington, D.C., reports AR.
“When you spend $2.5 billion on a renovation, I think it’s really disgraceful,” Trump said, hinting that Powell “doesn’t deserve a palace.”
This is the first open signal from the president that he may seek legal grounds to remove the Fed chairman, a move that has no precedent in modern US history. Under the current law, the president does not have the direct right to dismiss the head of the central bank, whose term expires in 2026.
Trump had previously criticised Powell for not agreeing to cut interest rates, which he said was holding back the economy. The Fed has maintained a cautious policy due to inflationary risks caused by the Trump administration’s tariff policy.
“I think it is,” Trump added when asked if this could be considered grounds for dismissal.
Commenting on the project, Fed officials explained that it is a necessary upgrade of two buildings, taking into account safety, energy efficiency and compliance with modern standards. But critics see it as a waste.
